On Friday at the EU Summit in Brussels 26 countries of the European Union agreed to consider tying their economies together more closely to prevent another debt crisis. Britian, the 3rd largest economy in the EU, refused to join the fiscal union. EU leaders added 267 billion dollars or 200 billion euros to the 665 billion rescue fund. Global markets rallied over 1% on the news of the fiscal union developments.

France and Germany helped to alter a EU treaty and impose tighter fiscal rules on all of its 27 EU members. Britian refused to go along with some of the new measures.

In other EU news, the European Banking Authority asked Euro zone banks to increase their capitalization requirements by 8 billion euros to 114.7 billion to maintain their Tier I capital ratio status. The 114.7 billion amount is considerably higher than the 106 billion requirement that was expected only two months ago.